KULR Receives Non-Compliance Notice from NYSE American

Rhea-AI Summary

KULR Technology Group, Inc. (NYSE American: KULR) has received a notice from NYSE American LLC regarding non-compliance with the continued listing standards. The company must submit a plan by January 19, 2024, to regain compliance with the continued listing standards by June 20, 2025.

Positive

• None.

Negative

• KULR is not in compliance with the NYSE American's continued listing standards, which may impact investor confidence and stock performance.

Insights

Financial Analyst

Stockholders' Equity and Compliance: The notice received by KULR regarding non-compliance with the NYSE American's listing standards is a critical financial health indicator. Stockholders' equity is a measure of a company's net value, indicating what shareholders would theoretically receive if all assets were liquidated and liabilities paid off. The shortfall against the exchange's requirements suggests KULR has been experiencing sustained losses, which may raise concerns about the company's long-term viability and financial stability.

Implications for Investors: In the short-term, the trading of KULR's stock remains unaffected, providing a window for investors to assess their positions. However, the long-term implications hinge on the acceptance and successful execution of the compliance plan. Failure to regain compliance could lead to delisting, which usually results in lower liquidity and marketability of a company's stock, potentially eroding shareholder value.

Industry Analyst

Market Perception and Strategic Outlook: The energy management sector is highly competitive and capital-intensive. KULR's non-compliance notice could affect market perception, potentially impacting partnerships, customer trust and investor confidence. The company's ability to articulate and implement a robust compliance plan may serve as a strategic pivot, emphasizing operational efficiency and financial discipline. This could be a catalyst for change, driving innovation and cost optimization.

Competitive Analysis: It is essential to benchmark KULR's performance against industry norms. Persistent losses leading to non-compliance are not the norm and suggest that KULR may be underperforming compared to its peers. An analysis of the root causes and a comparison with successful competitors would provide valuable insights into the company's strategic challenges and opportunities.

Legal Expert

Regulatory Compliance and Legal Implications: The NYSE American's listing standards are designed to maintain market integrity and protect investors. KULR's failure to meet these standards triggers a formal compliance process outlined in Section 1009 of the NYSE American Company Guide. The legal implications of non-compliance include increased scrutiny and the potential for more stringent reporting requirements. The company must navigate this process carefully, ensuring transparency and adherence to regulatory expectations to avoid further legal and financial repercussions.

Company to Deliver Plan of Compliance to NYSE American

SAN DIEGO, Dec. 22, 2023 (GLOBE NEWSWIRE) -- KULR Technology Group, Inc. (NYSE American: KULR) (the "Company" or "KULR"), a global leader in sustainable energy management, today announced it received a notice from the staff of NYSE American LLC (the "Exchange") that KULR was not in compliance with the Exchange's continued listing standards under Section 1003(a)(i), (ii), and (iii) of the NYSE American Company Guide. Section 1003(a)(i) requires a listed company to have stockholders' equity of $2 million or more if the listed company has reported losses from continuing operations and/or net losses in two of its three most recent fiscal years, Section 1003(a)(ii) requires a listed company to have stockholders' equity of $4 million or more if the listed company has reported losses from continuing operations and/or net losses in three of its four most recent fiscal years, and Section 1003(a)(iii) requires a listed company to have stockholders' equity of $6 million or more if the listed company has reported losses from continuing operations and/or net losses in its five most recent fiscal years. In order to regain compliance with Section 1003(a)(iii), the Company is now subject to the procedures and requirements of Section 1009 of the NYSE American Company Guide and has until January 19, 2024, to submit a plan (the "Plan") of actions it has taken or will take to regain compliance with the continued listing standards by June 20, 2025.

KULR intends to timely deliver a Plan to the Exchange. If the Exchange accepts the Plan, KULR will be able to continue its listing during the Plan period and will be subject to periodic reviews including quarterly monitoring for compliance with the Plan until it has regained compliance.

Receipt of the notice from the Exchange has no immediate effect on the listing or trading of KULR’s common stock on the Exchange, and does not affect KULR’s business, operations or reporting requirements with the U.S. Securities and Exchange Commission.

About KULR Technology Group Inc.
KULR Technology Group Inc. (NYSE American: KULR) is a leading energy management platform company offering proven solutions that play a critical role in accelerating the electrification of the circular economy. Leveraging a foundation in developing, manufacturing, and licensing next-generation carbon fiber thermal management technologies for batteries and electronic systems, KULR has evolved its holistic suite of products and services to enable its customers across disciplines to operate with efficiency and sustainability in mind. For more information, please visit www.kulrtechnology.com.

Safe Harbor Statement   
This press release does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. This release contains certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements in this release are based on information available to us as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business, which include the risk factors disclosed in our Annual Report Form 10-K filed with the Securities and Exchange Commission on March 28, 2023, as may be amended or supplemented by other reports we file with the Securities and Exchange Commission from time to time. Forward-looking statements include statements regarding our expectations, beliefs, intentions, or strategies regarding the future and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” and “would” or similar words. Except as required by law, we assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.  

Investor Relations:
KULR Technology Group, Inc.
Phone: 858-866-8478 x 847
Email: ir@kulrtechnology.com

Media Relations:
Further PR
Email: press@furtherpr.com 

FAQ

What notice did KULR Technology Group, Inc. receive from NYSE American LLC?

KULR received a notice from NYSE American LLC stating that it was not in compliance with the Exchange's continued listing standards under Section 1003(a)(i), (ii), and (iii) of the NYSE American Company Guide.

What does KULR need to do to regain compliance with the continued listing standards?

KULR needs to submit a plan by January 19, 2024, outlining the actions it has taken or will take to regain compliance with the continued listing standards by June 20, 2025.

How will KULR's non-compliance with the listing standards affect its stock performance?

KULR's non-compliance with the listing standards may impact investor confidence and stock performance.

Will the non-compliance notice affect KULR's business operations or reporting requirements with the U.S. Securities and Exchange Commission?

The receipt of the notice from the Exchange has no immediate effect on the listing or trading of KULR’s common stock on the Exchange, and does not affect KULR’s business, operations or reporting requirements with the U.S. Securities and Exchange Commission.